Have you ever looked at a product tag and read "Made in China"? That is because the product was manufactured there and shipped to here in Canada, this is called outsourcing. Outsourcing is to obtain goods or services from an outside or foreign supplier. Outsourcing is very good for businessmen, they get their goods manufactured abroad for cheap and then sell it on their land for a much higher price they had to pay for manufacturing it so they gain profit. Outsourcing is also termed "offshoring" mainly because you are manufacturing and making
your products "off-shore".
Image result for outsourcing picture
What are the Pros and Cons of outsourcing?
The idea of outsourcing might seem perfect, as if nothing is wrong with it, outsourcing not only has advantages. Many other perspectives are held against the idea of outsourcing. Outsourcing is key to today's business success, and is a controversial topic as to whether we should or should not outsource.
Here we discuss some of the pros and cons.
Pros:
Great for businesses:
Outsourcing is great for businesses considering the fact that they have high profits to gain. This is made possible by the lower manufacturing costs and higher selling prices. One of the major costs of manufacturing is labor. By manufacturing in third world countries, producers allow themselves to save a large margin of labor costs.
Providing Jobs to Developing Countries:
Since businesses want to pay the least amount of money for their products to get manufactured, they rely on third world countries such as India, Pakistan, Bangladesh, China(e.t.c), to manufacture for them. These countries are well-known for manufacturing for big companies such as; Bluenotes (Outsourced in Bangladesh) and Apple (In China).
Forming good ties with other countries:
Outsourcing benefits the countries that outsource because it shows that countries are welcomed by other countries. Looking back to what we previously learned. This also applies industrialization. How you may ask, this is because they are creating factories in countries and also giving thousands of jobs because there is a need for laborers in those factories.
Image result for outsourcing
Cons:
Job opportunities moved to other countries
Since businesses are providing jobs to the people of other countries, it is giving the jobs that could be given to the people living in the country of the business. Countries home to large companies suffer from high unemployment rates, and many blame such companies that could instead offer their origin country's people with the same jobs if their goods and services were assembled at home.
Skillset
To manufacture goods and services it is not only the workers required but also their skills, if they are not skilled enough it lacks the quality.Because of this, the people we outsource to, mostly they don't have enough skills and this is one reason that businesses don't outsource.
Possible Increase in Sweatshops and Child Labour
There will be a possible increase in sweatshops because with factories being made, creates an increase of sweatshops because obviously, companies want to pay for the cheapest they can.But with that idea creates that sweatshop idea cause it is really cheap and also because these factories are made in developing countries so it will obviously bring that idea in.Because these countries don't have good government structure or money to have a well-structured factory place.It will also bring the idea of child labor because these third world countries already have a reputation for child labour, so bringing in more jobs will create more child labour possibilities.
Alternative Perspectives On Outsourcing
Customer's Perspective:
When Customers see that a product is from China, they are usually reluctant from buying it and try to avoid it because from their experience they have realized it does not last long and it is "cheap".One of the reasons this can be true is because the products that are being made may not have quality products as to the countries in the North American region. Because this opinion is made it really affects other third world countries to such as Pakistan, Bangladesh, and others too because they are manufacturing just like China too and their quality in products is not as good as well
Employees Perspective:
For employees, they are satisfied with their needs.This is because the employees have a job and are getting paid so they don't care as much to if consumers like their products or not. They are just the people who make it. Outsourcing is providing the employees millions of jobs across the globe. Especially in the developing countries, where there is a need for jobs to promote the development of the country.
Owners Perspective:
The owners' point of view of outsourcing is very positive.The owners are happy because they are paying cheap for labour, while they are gaining a lot of profit selling those products at a great margin. Outsourcing companies around the world are the greatest profit earners. This explains why companies take advantage of outsourcing whenever they have the opportunity.
Image result for outsourcing
This source shows outsourcing because these are all the key points of outsourcing and all key terms to understand and affect outsourcing.
Fun Facts:
It is reported that in the year of 2016 about 1,457,000 were outsourced to other countries.
Wages for outsourced workers shift broadly by industry and by the nation where they're utilized. In the Manufacturing business, for instance, Chinese laborers make a normal of $1.36 every hour, contrasted with $23.32 for U.S.- based employee
China ranks as the second most popular destination for outsourcing, with 36% of companies relocating jobs here.
While outsourcing can spare cash, it's not without specific downsides. About 50% of managers that outsource say the quality of their service providers and a responsive versus proactive mentality is the most disappointing issues to manage.
Outsourcing I
What is outsourcing?
Have you ever looked at a product tag and read "Made in China"? That is because the product was manufactured there and shipped to here in Canada, this is called outsourcing. Outsourcing is to obtain goods or services from an outside or foreign supplier. Outsourcing is very good for businessmen, they get their goods manufactured abroad for cheap and then sell it on their land for a much higher price they had to pay for manufacturing it so they gain profit. Outsourcing is also termed "offshoring" mainly because you are manufacturing and makingyour products "off-shore".
What are the Pros and Cons of outsourcing?
The idea of outsourcing might seem perfect, as if nothing is wrong with it, outsourcing not only has advantages. Many other perspectives are held against the idea of outsourcing. Outsourcing is key to today's business success, and is a controversial topic as to whether we should or should not outsource.Here we discuss some of the pros and cons.
Pros:
Outsourcing is great for businesses considering the fact that they have high profits to gain. This is made possible by the lower manufacturing costs and higher selling prices. One of the major costs of manufacturing is labor. By manufacturing in third world countries, producers allow themselves to save a large margin of labor costs.Great for businesses:
Since businesses want to pay the least amount of money for their products to get manufactured, they rely on third world countries such as India, Pakistan, Bangladesh, China(e.t.c), to manufacture for them. These countries are well-known for manufacturing for big companies such as; Bluenotes (Outsourced in Bangladesh) and Apple (In China).Providing Jobs to Developing Countries:
Outsourcing benefits the countries that outsource because it shows that countries are welcomed by other countries. Looking back to what we previously learned. This also applies industrialization. How you may ask, this is because they are creating factories in countries and also giving thousands of jobs because there is a need for laborers in those factories.Forming good ties with other countries:
Cons:
Since businesses are providing jobs to the people of other countries, it is giving the jobs that could be given to the people living in the country of the business. Countries home to large companies suffer from high unemployment rates, and many blame such companies that could instead offer their origin country's people with the same jobs if their goods and services were assembled at home.Job opportunities moved to other countries
To manufacture goods and services it is not only the workers required but also their skills, if they are not skilled enough it lacks the quality.Because of this, the people we outsource to, mostly they don't have enough skills and this is one reason that businesses don't outsource.Skillset
There will be a possible increase in sweatshops because with factories being made, creates an increase of sweatshops because obviously, companies want to pay for the cheapest they can.But with that idea creates that sweatshop idea cause it is really cheap and also because these factories are made in developing countries so it will obviously bring that idea in.Because these countries don't have good government structure or money to have a well-structured factory place.It will also bring the idea of child labor because these third world countries already have a reputation for child labour, so bringing in more jobs will create more child labour possibilities.Possible Increase in Sweatshops and Child Labour
Alternative Perspectives On Outsourcing
Customer's Perspective:
When Customers see that a product is from China, they are usually reluctant from buying it and try to avoid it because from their experience they have realized it does not last long and it is "cheap".One of the reasons this can be true is because the products that are being made may not have quality products as to the countries in the North American region. Because this opinion is made it really affects other third world countries to such as Pakistan, Bangladesh, and others too because they are manufacturing just like China too and their quality in products is not as good as wellEmployees Perspective:
For employees, they are satisfied with their needs.This is because the employees have a job and are getting paid so they don't care as much to if consumers like their products or not. They are just the people who make it. Outsourcing is providing the employees millions of jobs across the globe. Especially in the developing countries, where there is a need for jobs to promote the development of the country.Owners Perspective:
The owners' point of view of outsourcing is very positive.The owners are happy because they are paying cheap for labour, while they are gaining a lot of profit selling those products at a great margin. Outsourcing companies around the world are the greatest profit earners. This explains why companies take advantage of outsourcing whenever they have the opportunity.This source shows outsourcing because these are all the key points of outsourcing and all key terms to understand and affect outsourcing.
Fun Facts:
Video:
https://www.youtube.com/watch?v=7qeehDLYa8g
Bibliography:
“Armed Subject.” Ethical Inquiry: April 2013 | Brandeis University, 13 Apr. 2013, www.brandeis.edu/ethics/ethicalinquiry/2013/April.html.The Pros and Cons of Outsourcing." Flatworld Solutions. Accessed November 17, 2017. https://www.flatworldsolutions.com/articles/pros-cons-outsourcing.php.
"The Pros and cons of outsourcing." BDC. Accessed November 15, 2017. https://www.bdc.ca/en/articles-tools/operations/operational-efficiency/pages/outsourcing-pros-cons.aspx.
Blog." Nimble Website. Accessed November 18, 2017. http://www.nimble.com/blog/why-outsourcing-is-a-good-thing-for-your-business/.
All you need to know about outsourcing." VinaOutsource. May 11, 2017. Accessed November 19, 2017. http://vinaoutsource.com/outsource-business-process/.